July 15, 2008 12:51 ET

Recently Completed Geophysical Surveys on Mt. Logano Property Prompts Immediate Drill Program

TORONTO, ONTARIO--(Marketwire - July 15, 2008) - VenCan Gold ("Vencan" or the "Company") (TSX VENTURE:VCG) is pleased to announce it will immediately commence drilling on its Timmins area Mt. Logano gold property in order to test newly defined geophysical targets. The planned program consists of 6-8 diamond drill holes totaling about 1,000 meters.

Recently completed IP/resistivity and magnetometer surveys have defined a minimum of five anomalous zones several of which have geological characteristics similar to those of major gold deposits in the Timmins area.

All five IP anomalies will be drill tested with a minimum of one hole on each target. Target L-5 that is located at a felsic porphyry/ultramafic volcanic rock contact displays an IP anomaly along at least 800 meters of this important contact. A distinct magnetic low is coincident with this IP response which may be indicative of the destruction of magnetite in an area of intense alteration.

Bill Nielsen, P.Geo. a Director of the Company commented, "We are very pleased to have identified five highly prospective targets within such close proximity to large producing and former producing gold mines. One target area in particular is quite intriguing in that it displays a strong IP anomaly at the contact between volcanic and intrusive rocks which also displays a signature of magnetic destruction."

The claim group is underlain by similar age rocks to those that host the prolific Timmins area gold deposits which have produced in excess of 65 million ounces. The contact between felsic porphyries and ultramafic/mafic volcanic rocks presents a significant gold environment target. The Nighthawk Lake gold deposit (Goldcorp Inc.) lies to the east while the Pamour, Hallnor and Hoyle Pond Mines (Goldcorp Inc.) lie to the north. The prolific Dome Mine as well as a host of other significant past producing gold deposits are situated to the west of the Mt. Logano Property.

The Mt. Logano Property, located east of Timmins, Ontario has recently been acquired from famed prospector Don McKinnon, known for his significant contribution to the discovery of the Hemlo gold deposit and major land holder in the Timmins area.

The property is located in the northern part of Shaw Township, extending well into the southern part Whitney Township and east into Carmen and Cody Townships. It is made up of 212 claim units covering an area of approximately 33.9km(2). A map of the property can be viewed on the Company's web site.

Initial field work by Vencan Gold has consisted of IP/resistivity and magnetometer surveys over an area underlain by porphyritic rocks that are in contact with ultramafic/mafic volcanic rocks. Initial interpretations by the Company's consulting geophysicist indicate five IP anomalies of significance, one of which lies at an extensive contact between porphyries and ultramafic vocanic rocks. Another strong IP target lies proximal to a northeast trending diabase dyke which is virtually perpendicular to regional strike. This anomaly straddles a porphyry/ultramafic volcanic contact. Another three geophysical targets lie at or close to the previously mentioned contact in the more northwesterly part of the property.

Moffatt Property - Atikokan, Ontario

Vencan is also planning on completing additional exploration work on its Moffatt Property located in the Atikokan area of northern Ontario. A comprehensive compilation of the historical data acquired by Vencan relating to the past producing Fern Elizabeth mine area will be completed and will play a key role in the exploration strategy going forward. Past work has defined a prospective structural zone that has distinct possibilities of hosting a significant gold deposit. Field work is due to commence later this summer with additional drilling planned for the fall.

Bill Nielsen, P.Geo., Director, is the designated qualified person for the technical information contained in this press release.

Randall Salo, P.Geo. is the Exploration Manager and is overseeing the overall exploration program on behalf of VenCan Gold

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

SEDAR: 00004007E

Contact Information

  • VenCan Gold
    Brent Nykoliation
    Director of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)

    VenCan Gold
    J. A. Kirk McKinnon
    President and Chief Executive Officer
    (416) 364-7024
    (416) 364-2753 (FAX)

    VenCan Gold
    Richard Schler
    Vice President & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)